Deleon v. WSIS, INC.

728 So. 2d 1046, 1999 WL 95682
CourtLouisiana Court of Appeal
DecidedFebruary 26, 1999
Docket31,602-CA
StatusPublished
Cited by6 cases

This text of 728 So. 2d 1046 (Deleon v. WSIS, INC.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deleon v. WSIS, INC., 728 So. 2d 1046, 1999 WL 95682 (La. Ct. App. 1999).

Opinion

728 So.2d 1046 (1999)

Tomas Coronado DELEON and Linda Coronado Deleon, Plaintiffs-Appellants,
v.
WSIS, INC. and George Williams, Defendants-Appellees.

No. 31,602-CA.

Court of Appeal of Louisiana, Second Circuit.

February 26, 1999.

Brian C. McRae, Counsel for Appellant.

D. Scott Brown, Steven R. Thomas, Mansfield, Counsel for Appellee.

Before GASKINS, KOSTELKA and DREW, JJ.

*1047 GASKINS, Judge.

The plaintiffs, Tomas Coronado Deleon and his wife, Linda Coronado Deleon, appeal from a trial court judgment rejecting their demand for specific performance of a contract to sell immovable property. For the following reasons, we reverse the trial court judgment.

FACTS

The defendants in this case are WSIS, Inc. (WSIS) and its president, George W. Williams. The corporation owned a tract of property in DeSoto Parish containing approximately 13.34 acres, with a mobile home. On October 10, 1995, WSIS listed the property for sale with Veterans Realty, through its real estate agent, Jim Norsworthy. On March 13, 1996, the plaintiffs and WSIS, through Mr. Williams, entered into a contract to buy and sell the property. The agreement provided that the plaintiffs would purchase the property for $39,000.00, with $200.00 deposited with the realtor, $6,300.00 in cash to be paid at closing, and the remainder to be financed by the seller for fifteen years at eight percent interest. The seller, WSIS, agreed to pay the closing costs. The agreement provided:

Title to the herein described property must be merchantable or must qualify for title insurance. Customary and useful restrictions, easements, and rights of way shall not be considered defects in title. Purchaser shall have ____ days from before closing[1] to examine title. If needed, Seller shall have thirty (30) days from date of written notification to perfect title and obligates himself to make reasonable efforts to do so at his own expense. If Seller is unable to perfect title within said time, the deposit shall be returned and all parties hereto shall be relieved of all obligations or liabilities under this contract.

The contract specified that the closing date of the sale shall be on or before June 20, 1996 or within seven days after objections to title have been cured, whichever date is later. The contract also specified that, in the event of nonperformance by either party, the other shall have the right to specific performance and/or damages and reasonable attorney fees.

After the execution of the contract to sell, Mr. Norsworthy engaged American Abstract and Title Company (American) to perform a title search. Mr. Norsworthy claimed at trial that he forwarded all necessary documents to American by April 1, 1996. However, Adrienne Remedies, an employee of American, testified that the documentation was not received until June 15, 1996, just a few days before the specified closing date. Ms. Remedies also testified that, when she originally received the file, she believed that Mr. Williams was the owner of the property, rather than WSIS, which is a Tennessee corporation.[2] After discovering that WSIS was the record owner of the property, it became necessary for American to secure a copy of the corporate charter from the State of Tennessee. The charter was not obtained by the June 20, 1996 closing date.

On June 17, 1996, Mr. Norsworthy informed Mr. Williams that there was a minor problem with the closing that should be cleared up by June 20, 1996. However, according to Mr. Williams, he was not told what the problem was. Mr. Williams testified that he called the title company and spoke with Ms. Remedies. She told him that there was a minor problem with completing the closing documents. On June 19, 1996, Mr. Williams faxed a list of provisions he wanted added to the deed. These provisions were that the mortgage given in favor of WSIS could not be assumed, that the property could not be subdivided during the mortgage, that WSIS was to retain one-half of all mineral rights, and that interest was to be calculated on the unpaid mortgage balance each month. These provisions had not been discussed with the plaintiffs and were not included in the contract to sell, which specified *1048 that the document constituted the entire agreement between the parties.

On June 20, 1996, the closing date specified in the contract to sell, the plaintiffs went to American's office, prepared to close the sale. The plaintiffs brought a certified check for $6,300.00, as provided in their contract with WSIS. However, the closing documents were not completed at that time and none of the parties realistically expected that the closing would take place on June 20. Therefore, neither Mr. Williams nor Mr. Norsworthy appeared at the closing.

Mr. Williams testified that when he did not hear anything by June 20, 1996, he assumed that the sale was off and the contract to sell was no longer binding. After the closing failed to occur on June 20, Mr. Norsworthy sent a copy of the original contract to sell with July 12, 1996 filled in as a new closing date. Mr. Norsworthy testified that according to general practice, the buyer and seller would initial the change, thereby extending the closing date. Mr. Williams did not initial the change or return the contract to Mr. Norsworthy.

On July 9, 1996, WSIS sold the timber on the property for $5,000.00. On July 12, 1996, American sent a letter informing Mr. Williams that the copy of the corporate charter had been ordered and the sale to the plaintiffs could be finalized as soon as the copy of the charter arrived. On July 17, 1996, American sent Mr. Williams a copy of the credit sale deed. Mr. Williams failed to respond.

In the interim, the plaintiffs became aware that WSIS had sold the timber on the property. According to Mr. Williams, the plaintiffs conveyed to him suggestions regarding how to deal with the diminution in the value of the property, caused by the cutting of the timber. Mr. Williams rejected those suggestions and relayed to the plaintiffs an offer that the property could be purchased for $42,000.00, to be paid over a two-year period. Obviously, the terms of this offer were more onerous to the plaintiffs than those in the original agreement to sell.

On January 7, 1997, WSIS entered into a lease purchase agreement concerning the property with third parties, Thomas and Becky McMillan. The contract with the McMillans was more favorable to WSIS than those of the contract to sell made with the plaintiffs. However, according to Mr. Williams, the contract with the McMillans was later nullified and WSIS still owned the property at the time of the trial.

In February 1997, the plaintiffs sent a demand letter to the defendants, requesting specific performance of the contract to sell. When WSIS and Mr. Williams refused to comply, on June 16, 1997, the plaintiffs filed suit requesting specific performance of the contract to sell, damages and attorney fees. Both WSIS and Mr. Williams were named as defendants. Mr. Williams was sued in his individual capacity and the plaintiffs claimed that the corporate veil of WSIS should be pierced. However, at trial, the parties stipulated to the dismissal of Mr. Williams as a defendant in his personal capacity.

Trial on the matter was held on December 15, 1997. On February 9, 1998, the trial court filed a judgment in favor of the defendants, dismissing the plaintiffs' demand for specific performance.

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Bluebook (online)
728 So. 2d 1046, 1999 WL 95682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deleon-v-wsis-inc-lactapp-1999.